Figure 5-19
-Refer to Figure 5-19. Which of the following statements is not correct?
A)Supply curve A is perfectly inelastic.
B)Supply curve B is perfectly elastic.
C)Supply curve C is unit elastic.
D)Supply curve D is more elastic than supply curve C.

Question

Figure 5-19    
-Refer to Figure 5-19. Which of the following statements is not correct?
A)Supply curve A is perfectly inelastic. 
B)Supply curve B is perfectly elastic. 
C)Supply curve C is unit elastic. 
D)Supply curve D is more elastic than supply curve C.

Quizplus · Accepted Answer

Supply curve C is actually perfectly elastic, as a small change in price results in an infinitely large change in quantity supplied. Unit elastic supply curves have a price elasticity of 1, meaning that a 1% change in price results in a 1% change in quantity supplied. Therefore, statement C is incorrect.